USDA Restricts PACA Violators in California and New York from Operating in the Produce Industry

USDA/AMS Press Release:

The U.S. Department of Agriculture (USDA) has imposed sanctions on five produce businesses for failure to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA).

The following businesses and individuals are currently restricted from operating in the produce industry:

• Excell Prod., Inc., operating out of Los Angeles, Calif., for failing to pay a $15,526 award in favor of a California seller. As of the issuance date of the reparation order, Wing Tsan was listed as the officer, director, and major stockholder of the business.

• Torres Produce, operating out of Delano, Calif., for failing to pay a $23,820 award in favor of a California seller. As of the issuance date of the reparation order, Jose L. Torres and Angelica Torres were listed as the officers, directors, and/or major stockholders of the business.

• Edgar Garzon, doing business as GSP Distributors, operating out of Los Angeles, Calif., for failing to pay a $7,466 award in favor of a California seller. As of the issuance date of the reparation order, Edgar Garzon was listed as the sole proprietor of the business.

• Legacy Produce Inc., operating out of Santa Cruz, Calif., for failing to pay a $38,818 award in favor of a California seller. As of the issuance date of the reparation order, Sue S. Herfurth and Ken G. Herfurth were listed as the officers, directors, and/or major stockholders of the business.

• Penny Tsigaris, doing business as Manavi Produce, operating out of Oceanside, N.Y., for failing to pay a $117,544 award in favor of an Arizona seller. As of the issuance date of the reparation order, Penny Tsigaris was listed as the sole proprietor of the business.

PACA provides an administrative forum to handle disputes involving produce transactions; this may result in a reparation order being issued that requires damages to be paid by those not meeting their contractual obligations in buying and selling fresh and frozen fruits and vegetables. USDA is required to suspend the license or impose sanctions on an unlicensed business that fails to pay PACA reparations awarded against it as well as impose restrictions against those principals determined to be responsibly connected to the business when the order is issued. Those individuals, including sole proprietors, partners, members, managers, officers, directors, or major stockholders may not be employed by or affiliated with any PACA licensee without USDA-approval.

The Agricultural Marketing Service (AMS), PACA Division, regulates fair trading practices of produce businesses operating subject to PACA, which includes buyers, sellers, commission merchants, dealers, and brokers within the fruit and vegetable industry. All oversight of actions related to PACA are conducted by AMS, an agency within USDA.

In the past three years, USDA resolved approximately 3,700 PACA claims involving more than $66 million. Our experts also assisted more than 7,100 callers with issues valued at approximately $100 million. These are just two examples of how USDA continues to support the fruit and vegetable industry.

For more information, contact John Koller, Chief, Dispute Resolution Branch at (202) 720-2890, by fax at (202) 690-2815, or by email at PACAdispute@ams.usda.gov regarding this matter.

For more PACA violations reported by Blue Book Services: #PACAViolations